FIRS and French Agency Unite for Digital Tax Reform

Daftar Isi

Strengthening Tax Administration Through International Collaboration

The Federal Inland Revenue Service (FIRS) has entered into a significant cooperation agreement with France, marking a pivotal step in modernising Nigeria’s tax administration. This partnership focuses on digital transformation, capacity building, and enhanced cross-border enforcement, aiming to create a more efficient and transparent revenue system.

The agreement was signed ahead of the anticipated transition of FIRS into the Nigeria Revenue Service (NRS) by January 2026. The memorandum of understanding (MoU) was signed by FIRS Chairman Zacch Adedeji and the French Ambassador to Nigeria, Marc Fonbaustier, at the French Embassy in Abuja. This collaboration brings FIRS into a formal working relationship with France’s Direction Générale des Finances Publiques (DGFiP), one of Europe's most technologically advanced tax authorities.

Adedeji emphasized that the partnership reflects a shared vision to build stronger, more resilient, and forward-looking tax systems. He highlighted the role of technology, artificial intelligence, and cross-border digital commerce in reshaping global public finance. As part of the agreement, Nigeria aims to leverage France’s experience in automated compliance systems, data-driven audits, and taxpayer service platforms.

France, in turn, stands to benefit from Nigeria’s rapid digital expansion, its youthful and tech-savvy population, and the innovative solutions emerging from Africa’s largest market. Both countries are expected to address challenges such as artificial intelligence deployment, cybersecurity, and cross-border taxation through this two-way exchange.

Another key area of focus is workforce development. Nigeria hopes to adopt France’s structured human capital systems, professional standards, and continuous learning culture. At the same time, Nigeria’s experience in managing a young, diverse, and fast-paced workforce will offer valuable insights to DGFiP. Together, they aim to develop models that strengthen institutional culture, build global competencies, and prepare their respective institutions for the future of public finance administration.

The MoU also includes cooperation on international taxation, the exchange of information, transfer pricing, and tackling base erosion and profit shifting (BEPS). Adedeji noted that as economic activities become increasingly borderless, the ability of both institutions to collaborate, share intelligence, and harmonise approaches will be crucial.

Over the past decade, Nigeria has struggled with low tax-to-GDP ratios, averaging between 6 to 10 per cent, which is far below the African average of 15 per cent. The government is banking on improved digital systems, unified tax administration, and stronger international cooperation to raise revenue without imposing new taxes. The Tax Act reforms aim to expand the tax base, simplify compliance, improve transparency, and align Nigeria’s tax laws with global standards, especially given the rise of the digital economy, cross-border business, and modern financial instruments.

France is among the global leaders in digital tax reforms, having deployed advanced e-filing systems, algorithm-driven compliance tools, and real-time data analytics in its tax administration. Adedeji said the pact will serve as one of the cornerstones of Nigeria’s transition into a more transparent, technology-driven revenue service capable of keeping pace with global shifts in taxation.

Enhancing Security and Tax Enforcement

In addition to the international collaboration, FIRS has intensified its partnership with key security agencies as Nigeria prepares to implement the National Revenue Service Act on 1 January 2026. Stronger collaboration is crucial to combating tax evasion and protecting national revenue assets.

At a multi-agency engagement held in Lagos, the Head of the FIRS Special Enforcement Division, CSP Kyes Bakfur, highlighted the need for deepened cooperation, intelligence sharing, and coordinated field operations across all security formations. He noted that the Special Enforcement Division has consistently protected FIRS facilities nationwide and led investigations into tax-related criminal offences.

Bakfur explained that greater synergy is needed with agencies such as the Economic and Financial Crimes Commission, the Financial Intelligence Unit, and the Federal Special Unit, especially as modern tax enforcement relies heavily on shared intelligence. He expressed hope for a much more symbiotic relationship, where security agencies can work together to create a robust agenda for tax enforcement across Nigeria.

A consultant to FIRS, Mr Oladipo Olayemi, emphasized the importance of strengthening collaborative capacity rather than focusing on internal challenges. He stressed the link between security and taxation, stating that it takes a secure environment before revenue authorities can perform their duties effectively. Olayemi called for joint task forces, coordinated compliance operations, and improved information sharing to combat issues such as smuggling, illegal mining, oil theft, cyber-enabled fraud, and illicit financial flows.

He warned that intelligence is key to discovering every tax evasion network and urged all parties to work together to ensure security is provided and revenue is generated adequately. Olayemi insisted that while acknowledging existing challenges, the focus must remain on progress and collaboration.